Hot Spots For VoIP Business Opportunities In Africa

VoIP is now gaining ground in Africa following steady improvements in Internet bandwidth and the growing number of VoIP service providers entering the market. There is still a large market for smaller providers and grey route termination with 10% of the the international call market using VoIP through the grey route method, there is few competitors and unclear regulations. 

Algeria VOIP- Get started in Algeria as soon as possible as the market is set to open in 2005.

While the fixed-line network is expanding slowly, the mobile sector has enjoyed extraordinary growth since the launch of the second (privately-owned) network in early-2002. In keeping with the government’s intention to make the telecom sector more competitive, another private mobile licence was issued in December 2003 and commercial service launched in August 2004. 2003 also saw the introduction of ADSL broadband services and the temporary legalisation of Voice over Internet Protocol (VoIP) services, a move from which the government retreated in 2004. Full liberalisation of the telecommunications market is now planned for 2005.

Suggested Opportunities:

- Mobile termination routes
- web2phone and pc-to-phone clients
- Enterprise PBXs

To set-up a VoIP service in Algeria, please contact Gibson@vocalscape.com, we are actively looking for partners and clients in Algeria.

Egypt VOIP- Still regulated but there are big opportunities with $2.5 billion USD in long distance.

In Egypt, VoIP is now being adopted by the monopoly carrier, Egypt Telecom, in the face of a myriad of illegal providers denting long distance and international revenues by setting-up grey routes. Ahmed Nazif, Egyptian minister of communication and information technology, was reported to say "If you can't beat them, join them." The Egyptian market currently generates $2.5 billion in international telephone revenues, and new VoIP services will bring an additional pathway for calls in and out of Egypt.

Suggested Opportunities:

- Mobile termination routes
- web2phone and pc-to-phone clients
- Enterprise PBXs

Kenya VOIP- Not very much data, but a large opportunity.

Little data is available on the Kenya market but it is clear that a large number of people using calling cards and pc-to-phone services to call back to Kenya. Daily there are over 300 - 400 posts of firms looking to purchase minutes in Kenya, Grey Routes or White Routes. Creating gateways and a calling card business in Kenya could be highly profitable. The population is large enough and the number of Kenyans in other Countries gives a large domestic and international market.

Suggested Opportunities:

- Calling Card prepaid Cluster
- Mobile termination routes
- web2phone and pc-to-phone clients
- Enterprise PBXs

Nigeria VOIP

In Nigeria there is a high level of underserved telephony communities in Nigeria, although as many of the Countries in Africa, a majority of minutes are related to Calling Cards. Although there have been increase in the teledensity in recent times by the introduction of GSM technology and Grey Routes, a vast majority of the population is still outside the market reach of this expensive telephony.

Nigeria is still one of the nations that has not chosen which way to go. AS the world embraces VoiP for cheaper telecommunications services, Nigeria appears to be lagging behind as the country's regulatory agencies and even the operators are not yet decided on which way to go. If you go into the market knowing what you want to do, you will be ahead of the game.

At a recent seminar on VoiP organized by the Ikeja Branch of the Nigerian Society of Engineers, Lagos, Omo Ettu had argued that there were unlicensed VOIP providers in the country who can be said to be a threat to investment.

But he asked: What to do about them-Ban them? Regularize them? Regulate them? Or Ignore them? At the pace the Commission is moving in Nigeria, the opportunity is still wide open and unaddressed.

Some of the more innovative models being discussed for Nigeria are:

To put in place an infrastructure of nationwide remote region (rural) BWA (Broadband Wireless Access) network based on satellite and WiMax technology to carry SIP based VoIP. The WiMax should be both fixed wireless (portable) and nomadic mobile, with zero-installed customer premises equipment (CPE).

The most probable strategy would be to culminate in the coverage of all major cities and then the underserved and last mile locations within Nigeria in two to three years and the creation of a streamlined, integrated and converged network based on IP technology.
· Phase I – To cover large cities such as Lagos, Abuja, Port Harcourt, Ibadan, Kano, Kaduna, Warri, Benin, Onitsha.
· Phase II – To cover all the state capitals and most profitable surrounding cities.

Somalia VOIP

A huge international opportunity with the number of Somalians living in other Countries call home via calling cards and VoIP regularily. Little data is available on Somalia. Creating gateways and a calling card business in Somalia could be highly profitable. The population is large enough and the number of Somalians in other Countries gives a large domestic and international market. With few firms capitalizing on this market, it is open for entrepreneurs. In recent discussions with firms wanting VocalScape to set-up an office with them in Somalia, it became apparent that a huge opportunity exists in the market and the regulations are not clear.

South Africa VOIP

In my eyes the largest opportunity for VoIP still exists in South Africa. THE arrival of VOIP (voice over internet protocol) in February will be "chaotic" as companies position themselves in this newly deregulated market, preparing to take advantage of the liberalisation.

The advent of VOIP is a consequence of government's decision to deregulate the telecoms market earlier this year, creating a buzz in the industry mainly because of the prospect for significantly cheaper calls, especially for high-volume business users.

This new terrain is likely to boost data traffic on SA's telecoms networks and result in declining voice traffic, as voice traffic moves to what were previously data systems.

Ordinary users might not even notice any physical difference when they use the telephone at work as the behind-thescenes switching infrastructure automatically re-routes telephone calls down data lines.

Most modern PBX systems such as VocalScape's PBX are already capable of making the switch, but the change could require upgraded bandwidth. But equally, for companies that already have diginet and DSL lines, for example, cost savings are theoretically conceivable over and above the general savings the new technology offers.

In short, it is potentially a hot market. But for this very reason, the number of players aiming to jump in is large.

Suggested Opportunities:

- Calling Card prepaid Cluster
- Mobile termination routes
- web2phone and pc-to-phone clients
- Enterprise PBXs

The Legal Advice

In those countries where VoIP is not tolerated it is, however, possible to terminate traffic, provided it is terminated as POTS telephony. Incoming traffic that has been originated in a VoIP-network can then not be distinguished from PSTN-traffic if - and that is basically the point - it will be handed over for the termination in a PSTN to a switch in that PSTN.

For the VoIP provider with global aspirations the advice is to talk to the regulator or relevant government ministry in each country. Offer it where it is allowed and make sure it is handed over according to the law in other countries, or at least if the laws are not clear, be sure to go into the opportunity with immediate back-up plans for your clients. Appropriate back-up plans can be developed on a Country by Country basis and cost analsysis of the risks is easy enough to do if you compare your business with the number of grey routes and firms terminating in that Country to date.

VOCALSCAPE is interested in finding vendors, partners, and implementors in each of the above mentioned Coutries. Please contact Gibson@vocalscape.com if there is interest in opening a VocalScape Office in your Country or region.

Comments

[kashif]

we need world wide termination pls send us the best possible rates
thanks

kashif

[Khondkar]

We are looking for direct routes to :

Sierra Leone
Ivory Coast
Ghana
Somalia
Sudan

Please mail me
kih_003@yahoo.com

[Annmary]

We're searching for Africa countries routes.
Have real volume traffic.
anntita@mail.ru

[mypctel]

By the time I am posting this, regulations are still unclear about VOIP business in Tunisia,Algeria and many other African countries but there are alternative legal solutions to sell in these countries.Please contact me for information.

[SAIDA YASSIN]

PLEASE CONTACT ME

[Jon]

Looking for trafik, from Bangladesh

[Rashid Virk]

I got Pakistan, egypt, saudi mob, UAE and BD cell, srilanka.........looking for india and nepal at 0.045 india and 12c nepal.... write me or talk to me live at:

rashid@breezecom.ae
(msn & email)

[mohamed ridaoui]

I would like to start a voip business in morocco can someone please let me know how to start? I am in touch with americain companies like vonage, lingo,... it is working but I would like to be the primary of the voip in morocco

[karim]

my name is karim and I would like to do same business idea in morocco. did you get any answers yet. if you do and you like to partership . let me know.. I have some IT background and since there is dsl in morocco Voip will be a hit as moroccan telecom is expensive for middle class. My e-mail is===> me.meagain@gmail.com

[Rashid Virk]

i need Sudan, Nigeria and morocco.. have good and clean per day traffic.. contact me at:

rashid@breezecom.ae (msn & email)

[bill]

I want to set up a voip temination business in kenya but i do not have enough information of what exactly is required i.e what kind of equipment. Please advice.

Thanx

[osama]

We have direct termination in Sudan if anyone interested.

[Haamid]

Hi Rashiad Virk... you do not need any such equipment or IT expertise to start VOIP in Morocco or Kenya.

All you need is to be able to get sales whether that be either consumer or business clients. The systems and service providers are readily available and always willing to do business with you providing you can prove that you can sell the VOIP packages and make it work in those countries.

If you need any further help, contact me on: haamid@yourchoicevoip.com

Regards!

[Jude]

I have been interested in pre-paid
phone card business in Ghana, Togo, Rep. of Benin and Nigeria. I do not have enough information on how it works and would appreciate to be adviced especially how the VOIP works. There is a great potential in Africa for that business.

[Md. Sozib Ferdous]

Dear All ,

If you need any rooute you can contact me. I have a2z route . Hight quality route for BD , PK,IN, PHI, EGPT, and so so.

If any one wants to be a reseller PLS contact me
sozib_ferdous@yahoo.com

[Alice]

I am looking for a company basically that can terminate calls originating from Canada and U.S and destined for all-over Africa basically and can provide turn key.Please email me at alomke@yahoo.com.I need this info ASAP please.
Thanks.

[Tunde Samuel]

HI
I am interested in establishing VOIP and calling card business in Nigeria. I need answers for both Nigeria and Ghana
Is VOIP Legal or not?
The Prices and restrictions for giving license?
Thanks

[Kwadjo Vidja]

We offer VoIP termination in Africa. Please visit www.africantelecom.net and send en email to kwadjo_vidja@africatelecom.net for further information.